---
title: Acting on our tax efficiency recommendations
description: Acting on our tax efficiency recommendations
---

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3. [Annual Tax Efficiency Review](https://help.1stformations.co.uk/accounting-service/tax-reviews-and-webinars?hsLang=en-gb#annual-tax-efficiency-review)

# Acting on our tax efficiency recommendations

## How to action the most common recommendations we make

Once you have reviewed your written recommendations from your Annual Tax Efficiency Review, here is how to action the most common ones.

### Changing your salary

If we recommend changing your director's salary, contact us and we will update the payroll in Xero Payroll from the next pay date. Do not change the salary figure in Xero yourself. The update needs to be applied to the payroll record to ensure the correct PAYE and National Insurance contributions are calculated and the Full Payment Submission to HMRC is accurate.

### Making a pension contribution

If we recommend an employer pension contribution, we need your pension scheme details and the amount to be contributed. We can post the accounting journal in Xero and prepare a contribution instruction.

### Adjusting your dividend strategy

If we recommend changing the timing or amount of dividends, contact us to discuss and we will help you plan a dividend schedule for the year. We prepare all dividend documentation as part of the standard service.

💡 **Good to know:** The most time-sensitive recommendations are those that need to be implemented before your accounting year end or before 5 April. We flag these clearly in the written summary. Act on them promptly to avoid losing the benefit for the current year.

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